Group 1 - Permian Resources is highlighted as a leading example of efficiency, disciplined growth, and financial robustness in the North American shale industry in 2025 [1] - The company possesses high-quality assets located in the Delaware Basin, which contribute to its exceptional profit margins [1]

Core Insights - The report focuses on Permian Resources Corporation (NYSE: PR) as a valuable investment option during periods of high market volatility [1] Company Analysis - The company is characterized by sustained free cash flows, low leverage, and sustainable debt levels, indicating financial stability [1] - Permian Resources is positioned in the oil and gas sector, which is often overlooked by the market, presenting potential value opportunities [1] - The company operates in emerging markets, showcasing high margins and promising medium to long-term investment prospects [1] Investment Strategy - The analysis emphasizes a preference for companies with a strong pro-shareholder attitude, including consistent buyback programs and dividend distributions [1] - The focus is on identifying companies that are currently in distress but possess high recovery potential, making them attractive for value investors [1]

Group 1 - Permian Resources announced another acquisition during the first quarter earnings press release, indicating ongoing growth and expansion strategies [2] - The revised guidance provided by Permian Resources did not account for the latest acquisition, suggesting potential for further adjustments in future forecasts [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] Group 2 - The analysis of oil and gas companies focuses on identifying undervalued names within the sector, examining balance sheets, competitive positions, and development prospects [1] - Members of the Oil & Gas Value Research service receive early access to analyses and insights that are not available on the free site [1]

Core Insights - Permian Resources is establishing itself as a significant player in the oil industry, particularly in the West Texas region, following a merger in 2022 that has led to substantial growth [1] Group 1: Company Overview - The company is focused on building a robust oil business that can thrive in a volatile market environment [1] - The merger in 2022 has been a pivotal moment for the company, allowing it to expand its operations and market presence [1] Group 2: Investment Potential - The company is characterized by strong growth in revenue, earnings, and free cash flow, making it an attractive option for investors [1] - Permian Resources is noted for its excellent growth prospects, which could lead to favorable valuations in the future [1]

Group 1 - Permian Resources (NYSE: PR) reported strong quarterly results, outperforming other mid-cap U.S. energy companies [1] - Production levels are increasing, and synergies from acquisitions are yielding faster-than-expected results [1] - Free cash flow reached a record high, indicating robust financial health [1] Group 2 - The company's acquisition strategy is proving effective, with improvements in efficiency metrics [1] - The focus on equity markets, particularly growth and small-cap stocks, is emphasized as part of the investment approach [1]

Core Viewpoint - Permian Resources has experienced a slight increase in share price of approximately 0.8% over the past month, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings report [1] Group 1: Earnings Estimates - Estimates for Permian Resources have trended downward over the past month, with the consensus estimate shifting down by 17.82% [2] - The overall outlook indicates a downward shift in estimates, with Permian Resources holding a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [4] Group 2: VGM Scores - Permian Resources has a Growth Score of B, but is lagging in Momentum Score with an F, while also receiving a B grade on the value side, placing it in the second quintile for this investment strategy [3] - The aggregate VGM Score for Permian Resources stands at B, which is relevant for investors not focused on a single strategy [3] Group 3: Industry Performance - Permian Resources is part of the Zacks Oil and Gas - Exploration and Production - United States industry, where Comstock Resources has shown a gain of 7.4% over the past month [5] - Comstock reported revenues of $512.85 million for the last quarter, reflecting a year-over-year increase of 52.7%, with an EPS of $0.18 compared to -$0.03 a year ago [6] - Comstock is projected to post earnings of $0.16 per share for the current quarter, indicating a year-over-year change of 180%, with the Zacks Consensus Estimate remaining unchanged over the last 30 days [6]

Group 1 - Permian Resources Corporation (NYSE: PR) has recovered much of its early April losses, indicating a positive trend for the stock [1] - The stock is viewed as a solid buy, with technical indicators suggesting a net bullish outlook [1] Group 2 - The analysis emphasizes the importance of technical analysis in evaluating stock performance [1] - The author expresses a commitment to high-quality, in-depth analysis for the investment community [1]

Group 1 - Permian Resources Corporation (NYSE: PR) has made a $608 million acquisition aimed at increasing its production by several percent in the future [2] - With WTI oil priced at $70 and Waha natural gas at $2.00, Permian Resources is projected to generate close to $2 billion [2] - The article highlights the analytical expertise of Aaron Chow, who has over 15 years of experience and previously co-founded a mobile gaming company [2]

Core Viewpoint - Permian Resources Corporation (PR) reported a first-quarter 2025 adjusted net income per share of 42 cents, missing the Zacks Consensus Estimate of 44 cents, primarily due to increased operating expenses and lower oil prices, although the figure was consistent with the previous year [1] Financial Performance - Oil and gas sales reached $1.4 billion, reflecting a 10.7% increase year-over-year but falling short of the Zacks Consensus Estimate by 1.2% [1] - Adjusted cash flow from operations increased by 13.9% to $960.5 million, with capital expenditures totaling $501 million, resulting in adjusted free cash flow of $460 million [6] - Total operating expenses rose to $872 million from $774.1 million in the prior year, driven by a 6.5% increase in lease operating costs and a 15.6% rise in depreciation, depletion, and amortization [5] Production and Pricing - Average daily production increased by 16.8% year-over-year to 373,209 barrels of oil equivalent (Boe), surpassing the Zacks Consensus Estimate of 368,855 Boe [3] - Oil volume for the quarter was 174,967 barrels per day, up 15.3% year-over-year, exceeding the consensus mark of 171,776 Bbls/d [3] - The average sales price for oil was $70.48 per barrel, down 7.4% from the previous year, and slightly below the consensus estimate [4] Dividend and Shareholder Returns - The board declared a quarterly cash dividend of 15 cents per share, equivalent to 60 cents annually, to be paid on June 30, 2025 [2] Strategic Moves - The company completed the sale of its non-core Barilla Draw gathering systems for $180 million during the quarter [2] - A strategic acquisition was announced, expected to contribute approximately 12,000 Boe/d in the second half of the year, although this is not included in the revised standalone guidance [10] Guidance and Outlook - Updated full-year 2025 guidance anticipates average daily production between 360,000-380,000 Boe/d, with oil production ranging from 170,000 Bbls/d to 175,000 Bbls/d [7] - Controllable cash expenses are projected to be between $7.25 and $8.25 per Boe, with lease operating expenses estimated at approximately $5.55 per Boe [8] - The capital expenditure budget has been slightly reduced to a range of $1.9-$2 billion [9]

[Part I—FINANCIAL INFORMATION](index=8&type=section&id=Part%20I%E2%80%94FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) For the first quarter of 2025, Permian Resources reported a significant increase in net income to $390.6 million, up from $229.6 million in the prior-year period, driven by higher production volumes and stronger natural gas and NGL prices Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,356,833 | $1,121,594 | | **Total Property and Equipment, net** | $15,358,996 | $15,473,478 | | **TOTAL ASSETS** | **$17,076,443** | **$16,897,900** | | **Total Current Liabilities** | $1,585,272 | $1,327,337 | | **Total Long-term Debt, net** | $3,710,381 | $4,184,233 | | **TOTAL LIABILITIES** | **$6,272,643** | **$6,379,381** | | **Total Equity** | $10,803,800 | $10,518,519 | Consolidated Statement of Operations Highlights (in thousands) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Oil and gas sales** | $1,376,451 | $1,242,999 | | **Total operating expenses** | $871,988 | $774,075 | | **Income from operations** | $504,463 | $469,036 | | **Net income** | **$390,563** | **$229,595** | | **Net income attributable to Class A Common Stock** | $329,298 | $146,575 | | **Diluted EPS** | **$0.44** | **$0.25** | Consolidated Statement of Cash Flows Highlights (in thousands) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $898,032 | $647,598 | | **Net cash used in investing activities** | ($361,816) | ($619,348) | | **Net cash used in financing activities** | ($313,323) | ($88,835) | | **Net increase (decrease) in cash** | $222,893 | ($60,585) | [Note 2—Acquisitions](index=16&type=section&id=Note%202%E2%80%94Acquisitions) The company completed a bolt-on acquisition from Occidental Petroleum in September 2024, adding approximately 29,500 net leasehold acres - Completed the acquisition of oil and gas properties from Occidental Petroleum affiliates on September 17, 2024, which included approximately **29,500 net leasehold acres** and **9,900 net royalty acres**[63](index=63&type=chunk) - In May 2025, the company agreed to acquire oil and gas properties from Apache Corporation for approximately **$608 million**, adding **13,320 net leasehold acres** and **8,700 net royalty acres** in its New Mexico operating area[157](index=157&type=chunk) [Note 4—Long-Term Debt](index=16&type=section&id=Note%204%E2%80%94Long-Term%20Debt) As of March 31, 2025, total net debt was approximately $4.0 billion, a decrease from $4.2 billion at year-end 2024 Long-Term Debt Composition (in thousands) | Debt Instrument | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Credit Facility | $0 | $0 | | Senior Notes, net | $3,998,984 | $4,184,233 | | **Total debt, net** | **$3,998,984** | **$4,184,233** | - As of March 31, 2025, the company had a borrowing base of **$4.0 billion** with elected commitments of **$2.5 billion** under its credit facility, with no borrowings outstanding and **$2.5 billion** in available capacity[69](index=69&type=chunk) - In January 2025, the company redeemed **$175 million** of its **9.875% Senior Notes** due 2031, paying **$192.3 million** and recognizing a **$5.8 million loss** on debt extinguishment[89](index=89&type=chunk) [Note 6—Stock-Based Compensation](index=19&type=section&id=Note%206%E2%80%94Stock-Based%20Compensation) Stock-based compensation expense increased to $16.9 million in Q1 2025 from $9.6 million in Q1 2024 Stock-Based Compensation Expense (in thousands) | Award Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Restricted stock | $6,214 | $4,586 | | Performance stock units | $10,715 | $5,045 | | **Total** | **$16,929** | **$9,631** | [Note 7—Derivative Instruments](index=21&type=section&id=Note%207%E2%80%94Derivative%20Instruments) The company uses derivative instruments to manage commodity price risk, reporting a net gain of $57.7 million in Q1 2025, a reversal from a $121.1 million loss in Q1 2024 Net Gain (Loss) on Derivative Instruments (in thousands) | Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Realized cash settlement gains (losses) | $21,308 | $7,345 | | Non-cash mark-to-market derivative gain (loss) | $36,423 | ($128,474) | | **Total** | **$57,731** | **($121,129)** | - As of March 31, 2025, the company has crude oil swaps for **45,000 Bbls/d** for the remainder of 2025 and **17,500 Bbls/d** for 2026, along with significant natural gas swaps extending into 2027[107](index=107&type=chunk)[109](index=109&type=chunk) [Note 9—Shareholders' Equity and Noncontrolling Interest](index=26&type=section&id=Note%209%E2%80%94Shareholders%27%20Equity%20and%20Noncontrolling%20Interest) In Q1 2025, the company declared and paid a total dividend of $0.15 per share, amounting to $121.0 million, with no share repurchases in the quarter Dividends and Distributions Declared and Paid | Period | Base Dividend/Distribution | Variable Dividend/Distribution | Total per Share | Total Paid (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Q1 2025 | $0.15 | $0.00 | $0.15 | $121,010 | | Q1 2024 | $0.05 | $0.10 | $0.15 | $115,521 | - The Board authorized a stock repurchase program of up to **$1 billion**, with no shares repurchased in Q1 2025, but **2.0 million Common Units** for **$31.5 million** in Q1 2024[136](index=136&type=chunk)[137](index=137&type=chunk) [Note 10—Earnings Per Share](index=27&type=section&id=Note%2010%E2%80%94Earnings%20Per%20Share) Basic EPS for Class A Common Stock increased to $0.47 in Q1 2025 from $0.27 in Q1 2024, reflecting significant net income growth Earnings Per Share (EPS) Calculation | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Basic EPS | $0.47 | $0.27 | | Diluted EPS | $0.44 | $0.25 | [Note 13—Subsequent Events](index=29&type=section&id=Note%2013%E2%80%94Subsequent%20Events) Subsequent to quarter-end, the company repurchased shares, reaffirmed its credit facility, declared a dividend, and agreed to a $608 million acquisition - In April 2025, **4.1 million shares** of Class A Common Stock for **$43.3 million** were repurchased[154](index=154&type=chunk) - On April 30, 2025, the company's credit agreement borrowing base was reaffirmed at **$4.0 billion** with elected commitments of **$2.5 billion**[155](index=155&type=chunk) - In May 2025, an agreement was entered to acquire oil and gas properties from Apache Corporation for **$608 million**, expected to close in Q2 2025[157](index=157&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 11% year-over-year revenue growth in Q1 2025 to a 16% increase in total production volumes, offsetting a 7% decline in realized oil prices - The company expects total drilling, completion, and facilities capital expenditures for 2025 to be between **$1.9 billion** and **$2.0 billion**, funded entirely from cash flows from operations[186](index=186&type=chunk) - The company plans to return capital to shareholders through a base dividend and opportunistic share repurchases, paying a quarterly base dividend of **$0.15 per share** in Q1 2025, totaling **$121.0 million**[188](index=188&type=chunk) Production and Revenue Comparison (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Production (MBoe) | 33,589 | 29,076 | 16% | | Average Daily Production (Boe/d) | 373,209 | 319,514 | 17% | | Oil Sales Revenue (in thousands) | $1,109,771 | $1,051,642 | 6% | | Average Oil Price ($/Bbl) | $70.48 | $76.13 | (7)% | | Natural Gas Sales Revenue (in thousands) | $81,658 | $38,767 | 111% | | Average Gas Price ($/Mcf) | $1.35 | $0.75 | 80% | Operating Cost Metrics (per Boe) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Lease operating expenses (per Boe) | $5.35 | $5.80 | (8)% | | Gathering, processing & transportation (per Boe) | $1.39 | $1.34 | 4% | | Cash G&A (per Boe) | $0.80 | $0.97 | (18)% | [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is commodity price volatility, mitigated by derivative contracts, with minimal interest rate risk due to fixed-rate debt - A **10% change** in commodity prices would impact quarterly sales by **$111.0 million** for oil, **$8.2 million** for natural gas, and **$18.5 million** for NGLs[205](index=205&type=chunk) - As of March 31, 2025, a hypothetical **10% shift** in the NYMEX forward curve would change the fair value of crude oil hedges by **$129.9 million** and natural gas hedges by **$31.8 million**[206](index=206&type=chunk)[213](index=213&type=chunk) - Interest rate risk is minimal as the **$4.0 billion** in senior notes are fixed-rate, and there were no borrowings under the variable-rate credit facility as of March 31, 2025[214](index=214&type=chunk)[215](index=215&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The principal executive officers and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[217](index=217&type=chunk) - No changes in the system of internal control over financial reporting occurred during Q1 2025 that have materially affected, or are reasonably likely to materially affect, the company's internal control[218](index=218&type=chunk) [Part II—OTHER INFORMATION](index=43&type=section&id=Part%20II%E2%80%94OTHER%20INFORMATION) [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course legal proceedings, including a potential environmental liability from the Earthstone Merger, not expected to have a material adverse effect - The company assumed a liability from the Earthstone Merger related to potential environmental defects from a prior Novo acquisition, with potential penalties exceeding **$1 million**, but no material adverse effect is expected[222](index=222&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes in the company's risk factors from those described in its 2024 Annual Report on Form 10-K and other SEC filings - There have been **no material changes** in risk factors from those described in the 2024 Annual Report[224](index=224&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2025, the company did not purchase any of its Common Stock in the open market under its stock repurchase program - No purchases of the company's equity securities were made by the issuer during the three months ended March 31, 2025[225](index=225&type=chunk) [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) During the quarter ended March 31, 2025, no directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[226](index=226&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO, and XBRL data files